PT  - JOURNAL ARTICLE
AU  - Javier Estrada
TI  - Buffett’s Asset Allocation Advice: <em>Take It … with a Twist</em>
AID  - 10.3905/jwm.2016.18.4.059
DP  - 2016 Jan 31
TA  - The Journal of Wealth Management
PG  - 59--64
VI  - 18
IP  - 4
4099  - https://pm-research.com/content/18/4/59.short
4100  - https://pm-research.com/content/18/4/59.full
AB  - One of the most important decisions retirees face is theasset allocation of their portfolios. They can have a staticor a dynamic allocation, and simplicity usually favors the former. Warren Buffett recently added another vote for static allocations by revealing that he had advised a trustee to split the bequest his wife will receive to 90% in stocksand 10% in short-term bonds. The evidence discussed here shows that, relative to other static allocations, a 90/10 splithas a very low failure rate and provides investors with good upside potential and downside protection. The evidence also shows that two minor twists to the 90/10 split result intwo very simple dynamic strategies with even better upside potential and downside protection.TOPICS: Wealth management, portfolio construction, risk management, performance measurement